Localization in accounting professions reaches 50% in Saudi Arabia, raising questions about what changes for those working in accounting

On 27 October, private establishments in Saudi Arabia moved to the second phase of localizing accounting professions: a 50 % rate, up from 40 % in the first year. Anyone working in accounting or hiring accountants now faces a seemingly simple calculation that directly affects salaries, offers, and renewals.

Ministerial Decision No. 103108, issued on 26 January 2025, raises the percentage gradually in five stages starting on 27 October 2025. After 50 % this year, it rises to 60 % in October 2027, then 70 % in October 2028. In October 2029, establishments employing three or four accountants will be subject to a 30 % quota, with 70 % remaining for larger establishments. These dates were published in the procedural guide released by the Ministry of Human Resources and Social Development in partnership with the Ministry of Commerce.

Who the rule actually covers

It applies to private-sector establishments that employ five or more workers in the accounting professions listed by name in the guide’s table. The percentage is calculated for the entire establishment. Licensed accounting and audit firms are subject to their own executive regulation, not to this table.

Example illustrating the figure

The guide itself uses an example of an establishment with 23 accountants. In the first phase, roughly nine Saudi accountants were required. In the second phase the figure becomes 11.5, rounded to the nearest whole number, resulting in a requirement of twelve Saudi accountants. In other words, three additional positions open in this company over a single year, and those seats need to be filled.

Conditions not shown in the title

A Saudi accountant is counted in the quota only if two conditions are met. First, professional accreditation from the Saudi Organization of Auditors and Accountants; those without accreditation are excluded. Second, a minimum salary recorded with the social insurance: 6,000 riyal for a bachelor’s degree holder or equivalent, and 4,500 riyal for a diploma holder or equivalent. Anyone earning less is not counted in the quota.

The decision also includes a clause that closes a known loophole: if a worker performs accounting duties under a different job title, directly or indirectly, the localization violation penalties set out in two other ministerial decisions cited by the guide apply. Changing the title in the contract does not alter the nature of the work.

What this means for you

If you are a Saudi accountant, the rule raises establishments’ demand for professionally accredited holders, but the guide does not guarantee a specific salary; accreditation and the recorded salary are what make you count. Verify that your salary recorded with social insurance meets the required threshold, as a discrepancy between actual and recorded pay could exclude you from the quota without your knowledge.

If you are an expatriate accountant, the decision sets a quota for the establishment rather than a ban on hiring. However, companies that have not met their quota face increasing pressure each year, so it is advisable before accepting a new offer or renewing a contract to inquire about the establishment’s quota status and confirm that the job title matches your actual work. The guide refers the penalties to Ministerial Decisions No. 75913 and No. 44558 without specifying the amounts, so do not rely on figures heard from unofficial sources.

For someone seeking their first accounting job, the timeline presents a clear roadmap: five years of growing demand for Saudi talent, making professional accreditation an early investment worth pursuing.

What we are waiting for

We did not find a published figure indicating the proportion of establishments complying after the first phase, making it difficult to assess how quickly the market is closing the gap. The metric worth tracking is the number of accounting job ads requiring professional accreditation in the coming months, as it is the first indicator of the second phase’s pressure on the ground.